Institutional Asset Management

Speaker:   |  CPD Hours: 6.0

Price £595 plus VAT

New dates coming soon.

OBJECTIVES

Many theoretical building blocks underpinning the history of investing have been sorely tested in recent years. Are markets ’Efficient’? Do we live in a statistically ‘Normal’ world? What happened to ‘Risk Free Rates of Return’ in the bond markets? These important issues will be addressed, from a practical perspective, to understand how today’s fund managers deal with such challenges.

CONTENT

Efficient Markets & Investing Strategies

  • Efficient Markets – are they?
  • Behavioural Finance & it’s impact on current thinking
  • What is the Equity Risk Premium? Is history to be a guide for the future?
  • Betas and the search for Alpha. Smart Beta
  • Diversification vs Correlation – tools to minimise risk in the portfolio
  • Can active management add value? The growth of Index Tracking
  • Case Study – Observing Beta at work in practice

Portfolio Performance Measurement & Attribution Analysis

  • What sort of returns do you want to measure exactly? Relative or Absolute?
  • Time-Weighted vs Money-Weighted Performance Measurement
  • Using a Portfolio Attribution model in Excel
  • What are the desirable properties of the ‘right’ Benchmark Index?
  • Problems with Benchmarks
  • The other impact on performance – Portfolio Turnover
  • The growth of Algorithmic Trading
  • Case Study – Share Turnover Velocity comparisons worldwide

Pension Fund Asset Allocation Strategies

  • The hidden time bomb – Dependency Ratios
  • Defined Benefit vs Defined Contribution Pensions
  • Liability Benchmarking – How would that work?
  • The relationship between Bond Yields & Present Value liabilities
  • How would LDI impact onto Portfolio Construction & Asset Allocation?
  • Which risks are still difficult to eliminate? Longevity risk
  • Case Study – Choosing an External Investment Manager

Risk Measurement and Management across the Investable Universe

  • Volatility – Statistical probability and the dispersion of returns
  • Do we live in a ‘Normal’ world?
  • Fat Tails in Finance & Black Swans explained
  • Case Study – Volatility in practice across the Mutual Fund Universe
  • Value at Risk – what is it & will it work?
  • Portfolio Optimisation and rebalancing – A tool to minimise Portfolio risk (Excel)
  • Sharpe & Information Ratios – Risk adjusted performance measurement
  • The Risk Parity approach to Asset Allocation
  • Wrap-up Quiz

WHO SHOULD ATTEND

This is aimed at professionals working at banks, asset managers, insurance companies and especially lawyers and accountants in Financial Services.

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